Bitcoin has recently experienced a significant decline, dropping from its all-time high of over $108,000 on December 16, 2024, to below $95,000.
This downturn is attributed to several factors, including record outflows from Bitcoin ETFs, with a net daily outflow of $680 million, and hawkish comments from Federal Reserve Chair Jerome Powell, indicating a potential slowdown in interest rate cuts next year.
Historically, Bitcoin has shown resilience after such corrections, often rebounding and reaching new highs. For instance, after a significant drop in August 2024, Bitcoin's price surged by over 25% in the following days.
However, the current market sentiment is cautious, with analysts suggesting the possibility of further declines before a potential recovery. Some predict that Bitcoin could test the $90,000 support level before any significant rebound.
Given these dynamics, it's essential to stay informed about market trends and consider your investment strategy carefully.
